Collins Foods reports 14.1% revenue growth in H1 FY24

Collins Foods Limited (ASX:CKF) has reported a 14.1% increase in revenues for the half-year ended 15 October 2023. The Group's business, which includes managing and operating KFC and Taco Bell restaurants, saw revenues from continuing operations reach $695.2 million, up 14.1% from the previous corresponding period. The growth in total revenues was mainly attributed to same store sales growth and new restaurant openings, offset by inflationary pressures. The underlying Earnings before interest, tax, depreciation, amortisation and impairment (EBITDA), post AASB 16, for the half year was $109.9 million, up 16.7% compared to the previous corresponding period.

Executive Commentary on H1 FY24 Performance

The Group's revenue growth of 14.1% in the first half of FY24 reflects the successful performance of our KFC and Taco Bell segments. The increase in revenues was driven by same store sales growth and the addition of new restaurant openings. The underlying EBITDA for the half year was $109.9 million, marking a 16.7% increase from the previous corresponding period. We are pleased with the overall performance and remain committed to delivering value to our shareholders and customers. The Group's focus on maintaining a strong balance sheet and its ability to operate as a going concern position us well for the future.

Outlook for Collins Foods

Collins Foods' strong revenue growth and improved EBITDA in the first half of FY24 demonstrate the resilience and potential of its business. The Group's ability to adapt to inflationary pressures and deliver positive results reflects its operational efficiency. With a focus on maintaining a strong balance sheet and a commitment to delivering value to shareholders, Collins Foods is well-positioned for future growth and success. The Group's ongoing expansion and strategic initiatives are expected to contribute to its continued positive performance in the coming periods.